PICC Property and Casualty, one of the biggest insurers on the mainland, reported record interim profit for the first half, largely due to greater turnover, high investment income and a large jump in underwriting profit.
The company, which sells non-life insurance products - from car to cargo insurance - across the mainland, reported a net profit of 5.29 billion yuan (HK$6.44 billion) in the six months to June 30, up 96.9 per cent from a year earlier.
PICC's share price jumped 10.38 per cent yesterday to close at HK$13.40 per share.
Key areas of insurance growth were a 9.3 per cent increase in motor, 10 per cent gain in commercial property, 14.8 per cent uptick in liability, 36 per cent jump in accident and health, and 13.3 per cent rise in cargo.
Total turnover increased 12 per cent year-on-year to 91.44 billion yuan during the first half. The company has a 37.3 per cent share of the general insurance market on the mainland. Underwriting profit was up 157 per cent to 4.94 billion yuan in the first half, as PICC said it needed to pay less compensation in liability insurance, health and accident insurance, as well cargo insurance during the first half.
Another factor that drove profit growth was a gain in investment income, up 41.3 per cent year-on-year to 2.66 billion yuan in the first half, resulting from a growth in the size of investment assets and an adjustment of the portfolio towards better-returning deposits and bonds.
